North Dakota Debt Collection Laws: Your Rights Beyond the FDCPA

In North Dakota, a business that collects debts owed to someone else generally must be licensed as a collection agency by the North Dakota Department of Financial Institutions under North Dakota Century Code Chapter 13-05. Operating as a collection agency in the state without that license is unlawful, and the law requires licensed agencies to post a surety bond and maintain a separate trust account for money they collect on a creditor's behalf. This is a meaningful layer of protection the federal Fair Debt Collection Practices Act (FDCPA) does not provide: the FDCPA sets rules of conduct but has no national licensing scheme. In North Dakota, you can ask whether the company contacting you actually holds a state license before you pay anything.

North Dakota's Own Collection-Agency Law

North Dakota regulates third-party debt collectors through its collection-agency statute (N.D.C.C. ch. 13-05), administered by the Department of Financial Institutions (DFI). Under that chapter, a person or company may not conduct a collection agency in North Dakota without first obtaining a license from the DFI. The law is built around several consumer safeguards:

• Licensing. Each collection agency must be licensed, and out-of-state agencies that collect from North Dakota residents are generally covered as well.
• Surety bond. Licensees must file a bond, which gives consumers and creditors a source of recovery if the agency mishandles funds.
• Trust accounting. Money a collector takes in for a creditor must be kept in a trust account and accounted for, rather than commingled with the agency's operating funds.
• Regulatory oversight. The DFI can investigate complaints and take action against a license, including suspension or revocation, for violations.

Because the license is a state requirement, an unlicensed outfit demanding payment is a serious red flag in North Dakota. Scam "collectors" who cannot produce a license number or written validation of the debt should be treated with extreme caution.

How North Dakota Layers Onto the Federal FDCPA

The federal FDCPA still applies in full to third-party collectors in North Dakota. It bars harassment, threats, calls at unusual times (generally before 8 a.m. or after 9 p.m.), false statements about the amount or legal status of a debt, and contacting you at work after you have told the collector your employer prohibits it. It also gives you the right to demand written validation of the debt and to tell a collector in writing to stop contacting you.

North Dakota's licensing law works alongside these federal rights rather than replacing them. So a North Dakota consumer can pursue two complementary remedies: an FDCPA-based claim for abusive conduct, and a state licensing complaint to the DFI when the collector is unlicensed or has violated the conditions of its license. Original creditors collecting their own debts are generally outside the FDCPA's definition of "debt collector," which is another reason the state framework matters.

How Long Can a Debt Be Collected? North Dakota's Statute of Limitations

North Dakota's general statute of limitations for contract debts is six years under N.D.C.C. § 28-01-16, covering written contracts and open accounts such as credit cards. Once that period has run, the debt is "time-barred," meaning a collector can no longer win a lawsuit to force payment if you raise the limitations defense in court. The debt does not vanish, and a collector may still ask you to pay, but it cannot use the courts to compel you.

A critical trap: in many states, making even a small payment or signing a new written promise on an old debt can restart the limitations clock. Before you pay anything on a very old account, get the exact age of the debt in writing and consider getting advice, because reviving a time-barred debt can expose you to a lawsuit you would otherwise have been able to defeat.

Wage Garnishment Limits in North Dakota

Federal law caps most wage garnishment at the lesser of 25% of disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage. North Dakota tracks the 25% federal ceiling but adds its own protection under its garnishment statute (N.D.C.C. ch. 32-09.1): the garnishable amount is generally reduced by an additional exemption for each dependent the debtor supports. As of 2026, North Dakota's dependent reduction is commonly stated as $20 per week for each dependent family member residing with the debtor, which shrinks the amount a creditor can take from a paycheck. Because the precise calculation and any threshold tied to the minimum wage can change, confirm the current figures with the official statute and the court before relying on a specific number.

Certain income is generally protected from garnishment entirely, including Social Security, SSI, veterans' benefits, and many other public benefits. If exempt funds are nonetheless frozen in a bank account, you can file a claim of exemption to recover them.

How to File a Complaint With the North Dakota Attorney General

For abusive, deceptive, or unlicensed collection practices, North Dakota consumers can complain to the North Dakota Attorney General's Consumer Protection and Antitrust Division. This office accepts written consumer complaints, can mediate disputes with businesses, and enforces the state's consumer-fraud and unlawful-practices laws. To make the most of a complaint:

• Write down dates, times, and what each caller said, and keep voicemails and letters.
• Send any dispute or "stop contact" request in writing and keep a copy.
• Note whether the collector ever sent the required written validation of the debt.
• Ask the collector for its North Dakota collection-agency license information.

You can also report licensing problems directly to the North Dakota Department of Financial Institutions, which oversees collection-agency licenses, and report FDCPA and credit-reporting violations to the federal Consumer Financial Protection Bureau (CFPB). For inaccurate items on your credit report tied to a collection account, the federal Fair Credit Reporting Act (FCRA) gives you the right to dispute and demand correction.

Where to Verify the Law

Statutes and dollar thresholds change, so verify specifics before acting. The North Dakota Century Code (chapters 13-05 on collection agencies, 28-01 on limitations, and 32-09.1 on garnishment) is published by the North Dakota Legislative Branch. Licensing status can be confirmed with the Department of Financial Institutions, and consumer-rights questions and complaints go to the North Dakota Attorney General's Consumer Protection and Antitrust Division. When a collector's claim and the official source conflict, trust the official source.

Official North Dakota Sources

This page is based on North Dakota law. Limits and deadlines change — verify the current details directly with the official North Dakota sources below. This is general legal information, not legal advice.

• North Dakota Attorney General - Consumer Protection Division & Resources — official North Dakota agency.
• File a Consumer Complaint - North Dakota Attorney General
• North Dakota Century Code Chapter 51-15 - Unlawful Sales or Advertising Practices (Consumer Fraud)

Federal law also applies. Federal laws like the Fair Debt Collection Practices Act and Fair Credit Reporting Act protect you nationwide, on top of North Dakota’s own rules.